Respectful treatment when determining their satisfaction at a job. Here is how employee benefits help employee retention.
Many factors can cause an employee to leave their job. Some employees leave because of low pay and toxic workplace culture. Other times, employees might not feel respected at the job or don’t feel as if there are growth opportunities. Surefire ways to retain your top talent is ensuring they make livable wages and feel respected. It’s also worth considering the quality of your employee benefits package. According to the Society for Human Resource Management (SHRM), 63% of U.S. employees expressed that compensation and benefits are vital, second only to respectful treatment when determining their satisfaction at a job. Here is how employee benefits help employee retention.
How Employee Benefits Make a Difference
Pay is the top consideration in helping employees decide whether to work for a company. However, high-earning wages are no longer enough. Employees want to feel secure long-term. If an employee becomes sick, they want to be able to receive the care they need. If an employee needs dental work done or a new pair of glasses, they want to be able to do that.
Life insurance is also another consideration. People want to ensure their families don’t have too many financial worries if they’re no longer here. Not only do you have to ensure that your regular employees have the best employee benefits. However, you also want to think strategically about your executive benefits package. Executives might wish to have alternative retirement vehicles to maintain their lifestyles as they retire. The point is that the right job not only benefits employees in their professional world. It also helps them personally.
The “Benefits” of High Employee Retention
High turnover rates hinder an organization’s long-term success. If you don’t have qualified employees staying onboard for a while, you’ll have to keep training and onboarding new hires. Higher employee retention rates mean you’ll spend less time and money trying to replace the employees who left.
Enrich Financial Wellness shared statistics coming from SHRM. SHRM suggests replacement costs can be as high as 50%-60% of an employee’s salary, with overall costs between 90%-200%. For example, it would cost at least $30,000 to replace an employee who makes $60,000 annually. That would also result in at least a $54,000 overall loss to the company. Imagine if a few employees left. These costs would only skyrocket.
Offer Employees the Benefits They Want
The best way to retain employees through an employee benefits package is to provide them with the benefits they want and need. For example, you might believe that HSAs are the best healthcare plans. However, some employees might not prefer to put money aside to pay for their healthcare expenses. Some employees might have to pay for prescriptions monthly and benefit more from a Gold plan. Other employees might want to see any doctor they choose. Thus, a PPO vs. an HMO might be their better option.
The point is that you should offer your valued and talented team a mix of different benefits that could benefit anyone. Employee retention starts before you hire someone. It would help to establish the best workplace culture before you start noticing turnover rates. If you stay prepared, you will never have to fix mistakes retroactively.
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Malden Solutions has a wealth of expertise in providing employer insurance solutions, H.R. solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.
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